|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 240.1 Billion||USD 348 Billion||4.76%||2022|
The global olefins market size was worth around USD 240.1 Billion in 2022 and is predicted to grow to around USD 348 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.76% between 2023 and 2030. The olefins market report analyzes the global olefins market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the olefins industry.
Olefins are also known as alkenes and they are a group of hydrocarbon compounds that are of critical importance to the chemicals and plastics sectors. The industry refers to the trade associations concerning the production and distribution of olefins that are essential and that are derived from petroleum-based feedstocks by undergoing a process called steam cracking. The fraternity is driven by various reasons and one of the primary aspects is the growing demand from end-user verticals such as textiles, automotive, packaging, and construction.
Growing demand from end-user verticals to propel market growth
The global olefins market is projected to grow owing to the increasing demand from end-user verticals such as the packaging, automotive, construction, and textiles industries. Some of these sectors are one of the fastest-growing segments and their revenue directly impacts the demand for olefins. In the textile industry, the olefins’ requirements are mainly driven due to their high strength. They are also highly durable and resistant to moisture, making them an ideal choice in the textile business. A very common application of olefin in this sector includes the production of fiber. Olefins like polyethylene (PE) and polypropylene (PP) are used extensively in the production of non-woven fabrics which have further applications in protective clothing, hygiene products, and geotextile. They are also used for the production of coating materials that are layered over fabrics. The coatings provide fabric resistance to ultraviolet rays, water, and flame. Hence olefins are used significantly while producing outdoor clothing materials.
Growing environmental concerns to restrict market
The global olefins market is expected to come across certain roadblocks during the growth period mainly due to the growing concerns over the environmental impact of olefin production. The process generally leads to a high emission rate of greenhouse gasses along with other pollutants. These emissions tend to damage the ecosystem and if it remains uncontrolled, the impact would soon become irreversible. This has led to increased pressure on the companies to adopt and use more sustainable production processes which will have less to no negative impact on the environment. This could lead to an overall increase in the total cost of production thus pushing out smaller players from the industry.
Increasing demand for renewable feedstock to provide excellent growth opportunities
The olefins industry is witnessing a surge in demand for renewable sources of feedstock which can further be used for the production of olefins. This provides an excellent opportunity for the industry players to invest in research & development processes targeting the use of bio-based and renewable sources for producing olefins. Furthermore, the potential of the emerging markets remains relatively untapped and the market may register a higher CAGR if fraternity businesses can tap into these economies.
Changing prices of feedstock to challenge the market expansion
Olefins production is heavily reliant on a constant supply of feedstock. Factors like availability and cost of feedstocks like natural gas and crude oil impact the olefins industry. However, the price of these raw materials is highly subject to various social-economical-and political factors that may arise in either of the trading nations. Furthermore, currently, the oil & gas sector is highly sensitive owing to the war-like situations between various countries. The constant fluctuations in feedstock prices may impact the profitability of olefins producers.
The global olefins market is segmented based on product type, type, distribution channel, application, and region.
Based on product type, the global market divisions are olefin oxides, olefin glycols, ethylbenzene, polyolefins, and cumene. In 2022, the highest growth was observed in the polyolefins segment. They belong to a family of polymers that are made of olefins like propylene and ethylene. Polyolefins include polyethylene (PE) and polypropylene (PP), which have wide-scale applications in industries like automotive, packaging, construction, and consumer goods. PP and PE are known to account for more than 60% of the total olefins consumption. Other products like olefin glycols, olefin oxides, ethylbenzene, and cumene are also crucial to the industry but not as significantly as polyolefins
Based on type, the global market divisions are ethylene, butadiene, propylene, butylene, and others.
Based on distribution channel, the global market is segmented into distributors and wholesale. In 2022, the industry witnessed the highest growth in the distributors segment because mainly olefins are sold using the advantages of distributors instead of wholesale channels. In the former method of distribution, the purchase is made by the distributor directly from the manufacturers which is then sold to end-users such as compounders, processors, and converters. Since distributors deal with a dedicated set of networks, the market reach through this distribution channel is higher. The spot price for ethylene is around USD 1,200-1,300 per metric ton.
Based on application, the global market divisions are synthetic lubricants, polyethylene, detergent alcohol, cosmetics, plasticizers, adhesives, and others.
|Report Attributes||Report Details|
|Report Name||Olefins Market Research Report|
|Market Size in 2022||USD 240.1 Billion|
|Market Forecast in 2030||USD 348 Billion|
|Growth Rate||CAGR of 4.76%|
|Number of Pages||195|
|Key Companies Covered||BASF SE, ExxonMobil Chemical, Dow Inc., Sumitomo Chemical Co., Ltd., LyondellBasell Industries, Lotte Chemical Corporation, Saudi Basic Industries Corporation (SABIC), Mitsubishi Chemical Corporation, Royal Dutch Shell plc, Formosa Plastics Corporation, Chevron Phillips Chemical Company LLC, INEOS Group Holdings S.A., Idemitsu Kosan Co., Ltd., China Petroleum & Chemical Corporation (Sinopec), LG Chem Ltd., PetroChina Company Limited, Occidental Petroleum Corporation, Braskem S.A., PTT Global Chemical Public Company Limited, and Reliance Industries Limited.|
|Segments Covered||By Product Type, By Type, By Distribution Channel, By Application, And By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
Asia-Pacific to lead with the highest CAGR
The global olefins market is expected to witness the highest growth in Asia-Pacific. It is currently the largest and highest-growing region in the global industry. The market is essentially driven by the immense production and consumption of olefins-derived products across end-user verticals. Countries like China, Indonesia, and India are some of the leading nations. These regions are densely populated and the majority of the population falls in middle-income groups with a large part of the people being qualified in the low-income strata.
This means that the demand for consumer goods in these economies is exceptionally high. Furthermore, the growing investment in the development of the regional petrochemical industry is another crucial factor in the regional CAGR. Currently, China is the largest producer and consumer of olefins. Latin America and the Middle East may also witness steady growth due to the growing demand for consumer goods and rapid investment in the petrochemical sector.
The global olefins market is expected to lead by players like:
By Product Type
By Distribution Channel
Olefins are also known as alkenes and they are a group of hydrocarbon compounds that are of critical importance to the chemicals and plastics sectors.
The global olefins market is projected to grow owing to the increasing demand from end-user verticals such as the packaging, automotive, construction, and textiles industries.
According to study, the global olefins market size was worth around USD 240.1 billion in 2022 and is predicted to grow to around USD 348 billion by 2030.
The CAGR value of olefins market is expected to be around 4.76% during 2023-2030.
The global olefins market is expected to witness the highest growth in Asia-Pacific. It is currently the largest and highest-growing region in the global industry.
The global olefins market is expected to lead by players like BASF SE, ExxonMobil Chemical, Dow Inc., Sumitomo Chemical Co., Ltd., LyondellBasell Industries, Lotte Chemical Corporation, Saudi Basic Industries Corporation (SABIC), Mitsubishi Chemical Corporation, Royal Dutch Shell plc, Formosa Plastics Corporation, Chevron Phillips Chemical Company LLC, INEOS Group Holdings S.A., Idemitsu Kosan Co., Ltd., China Petroleum & Chemical Corporation (Sinopec), LG Chem Ltd., PetroChina Company Limited, Occidental Petroleum Corporation, Braskem S.A., PTT Global Chemical Public Company Limited, and Reliance Industries Limited.